"There are walls of worry, we are climbing those. But here are the facts: the economy is expanding, it's not contracting; profits are rising, they aren't falling and valuations are extremely attractive—that's the big difference from ten years ago and today," he said.
"It's only been in the past few months that we've seen money flow into equity funds. For the previous two years money was flowing out of equity funds into bond funds," Smith explained.
In addition, he went on to say he puts so much emphasis on growing dividends because it's the most "tangible statement management can make about the current fundamentals and their confidence in the future."
For that reason, Haverford has been very successful long term (since 1979) with three stocks: Coca Cola , Johnson & Johnson and Procter & Gamble .
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